Short Selling Properties With Mold
Could someone tell me if it is logical to short sale a property with mold 10 cent on the dollar or 10% of what is owed on the property. I heard Dwan Bent-Twyford and Sharon Restrepo say that at their short sale bootcamp in Glen Ellyen, Illinois a week ago. I just wondered if a bank would accept that price. I'm dealing with a property like that right now and it has extensive mold. Could one of you answer this question for me?
Kevo
As with any other short sale proposal, it has to be compelling. Mold is one of the taboo words these days. You'll want to include a mold report in your proposal to the bank along with a copy of the estimate to remediate/repair the property. Whether you get it for 50% of the loan amount or 10% of the loan amount may be irrelevant. You don't base your decisions on loan amount but rather how much under FMV you can acquire the property. If it happens that 10% of the loan amount is also 50% of the property's perceived FMV including repairs, then you've got yourself a deal.
I would get a disaster cleanup company or real expensive contractor (like me to give you a bid on mold removal and tell them not to be shy! YOu want the rock removed if there is any possibility of reoccurance, an ionizer treatment to kill spores, airborne filtration for airborne spores etc.
I bet you could come down a long, long ways!
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